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EXPANSION ISSUES OF A SMALL BUSINESS

"Some men are born to greatness, others acquire greatness, and still others have greatness thrust upon them." John F. Kennedy

This is very true of small business, and sums up well the subject of this page in several ways;

• born to greatness - you inherit a parents business when they retire and carry on a family tradition. Although much of the challenge of building a new business is lost and finances are usually sound the acquiring  new owner often has new ideas, to change or expand the business.

  • the new owner may lack some of the sparkle of the founder, and for a while at least flounder, then cope and do well, fail, or as is often the case sell out.
  • the new owner may have greater and better abilities than the founder and achieve even more from the company, perhaps opening up new markets, adding new products, expanding internationally or going public, the list is endless.
  • given time, a family business, passing through generations can become huge, and although massively profitable can become inefficient in many areas. Thus owners should never become complacent as to the success of their business, lest competitors take advantage of any weakness they themselves fail to spot.
  • in truth inherited business wealth is achieved by a small percentage of the whole, most businesses are created from scratch by enterprising and talented people from all walks of life.

• others acquire greatness - many people have created their own business and built it into a success with solid determination and ambition. Where they get to is all part of their master plan.

  • creating and honing a business to perfection, to allow growth and profitability is not within every owners ability or desire. The majority of small businesses stay that, small, run by one person who is happy at that level enjoying freedom, independence and a decent life style.
  • people usually start a new business with a rough outline of what they want to achieve in terms of size, profits and trading area. Provided they have a needed product or service and are sensible they should obtain the required success given time.
  • expansion from the time the business is launched to the LEVEL the owner seeks can take a varying amount of time based on the desires and ambitions of the owner. Some hit their level in months or years, others have no upper limit as such and continue to exploit opportunities indefinitely.

• others have greatness thrust upon them - here a small business, by luck or a change in the market creates growth for a business owner which was not expected or planned for. For some this is a great opportunity not to be missed and they successfully take full advantage. Others find coping with this unexpected growth hard to manage, even impossible.

  • faced with unexpected, or even unwelcome growth the owner needs to respond quickly by taking on more staff or premises, by appointing managers or supervisors, or take advantage of perhaps selling out and cashing in on their unexpected success. Timing is everything.
  • a business booming can be an exciting time and tests fully the basic business format established by the owner at the onset. Some procedures in efficient companies work like clockwork allowing virtually unlimited expansion with minimum fuss.
  • to others the business can fall into disarray mainly due to the owners or managers from responding well to a new, usually sudden demand in business. No one likes to turn away new business, however companies do need to know their limitations and not let the market for their products or services dictate the future of a business that an owner finds unwelcome.

Useful web sites

• Small Business Expansion  - General tips and articles on small business expansion financing.

• Business expansion - 10 Ways to Grow Your Business "Physical expansion isn't always the best growth answer without careful research, planning and number-planning,"

• Operating Your Successful Small Business: Expansion Business expansion can mean various things. You can increase the product line of your business, enlarge your physical plant, take on new employees.

• Business Expansion: Business Expansion: Encyclopedia of Small Business.

• Business expansion | venture capital Business Expansion: Venture capital and entrepreneurship - Thinking ... But so, alas, are many of the small companies into which investors sunk their funds.

• Business Expansion: Definition and Much More All successful small business start-ups eventually face the issue of handling business expansion or growth.

Please feel free to Contact Us with questions or to give us information to add to our knowledge base.